The Anglesea Golf Club has grappled with financial challenges for many years, primarily stemming from a declining membership (excluding the COVID period). Previous solutions, such as selling land, provided short-term relief but compromised the club’s long-term financial health.

Recognising the need for sustainable solutions, subsequent Boards implemented cost-saving measures (solar panels) and revenue diversification strategies. These efforts helped the club operate within its financial constraints to the point of not having to dip into our overdraft.

The Boards of that time also managed to extend the interior of the clubhouse, build the deck overlooking the 18th hole, purchase new furniture for the dining area, repaint the interior and exterior, build new sheds, buy new machinery and install solar panels. It did all this whilst still operating within its means.

However, despite these efforts, the club is once again facing financial challenges. This year has seen another significant decline in membership and therefore revenue (2 years running). A portion of the revenue from renewals will be required to repay our overdraft. With a decline in membership, there will be far less in reserve for running the club, let alone making course improvements, unless we sell land assets

The plan to sell the remaining block in McMahon and utilise townhouses as collateral for an overdraft offers only a short-term fix. What it doesn’t do is address the underlying issue of declining membership and the reliance on asset sales for financial buoyancy. It’s imperative for the club to shift its focus toward long-term financial stability from revenue, not asset sales.

This can be achieved by prioritising critical projects and developing sustainable revenue streams. Revenue from initiatives like the driving range and kangaroo tours has and will significantly contribute to the club’s finances. Later this year, we will further benefit from the townhouse development, potentially providing a further $200k+ a year in revenue. In addition, we will receive $400k for the cash component of the townhouse project. This was part of the negations by prior Boards, which also sees the club receive 3 townhouses.

Our last block in McMahon is an asset that produces no revenue, just capital gain. There is a good argument to sell it, but members should also be aware that we previously sold one of the McMahon blocks for $250k, which about 10 years later sold for $925k. Imagine the course improvements we could make if we still had two blocks.

It’s crucial to conduct immediate research to understand the reasons behind the substantial decline in membership and take proactive measures to address them.

By balancing short-term financial needs with long-term sustainability and avoiding reliance on asset sales, the Anglesea Golf Club can secure its financial future and ensure continued success. In the alternative, if we proceed down the path of selling assets such as the townhouses (which has been mooted), it’s not a question of if, but when we have our next financial crisis, but next time we’ll have no assets to bail us out.

Uwe Morzinek

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